Who's the No. 2 Asian automaker behind Toyota?
08-30-2010, 06:36 AM
#1
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Who's the No. 2 Asian automaker behind Toyota?
So, Toyota is the largest Asian automaker in the US, but who is number two? Honda of course... for now at least. It looks like not one but two other companies are closing in on Honda's numbers to unseat it as number two, possibly pushing it to number four in the next couple years based on trends. Pretty interesting read.
http://www.usatoday.com/money/autos/2010-0...n-hyundai_N.htm
http://www.usatoday.com/money/autos/2010-0...n-hyundai_N.htm
By G. Chambers Williams III, The Tennessean
NASHVILLE — Toyota's tarnished image has helped Nissan gain ground among Asian carmakers this year, but a U.S. sales surge by fast-moving South Korean automaker Hyundai may knock the carmaker down a notch just as it starts an ad campaign this weekend to move up.
Buoyed by 10 straight months of sales gains, Nissan was making in-roads to eventually unseat Honda as the No. 2 Asian automaker on these shores, but Hyundai's pitch of lower prices for midsize sedans is capturing momentum, especially when coupled with sales of the Kia brand that Hyundai also owns.
"Really, Nissan's biggest threat isn't Honda," said Ed Kim, chief industry analyst for the research firm AutoPacific. "The one they need to be concerned about is Hyundai."
Some analysts see Hyundai — combined with Kia — overtaking Nissan in market share by the end of the year based on the number of cars sold.
A once clear-cut hierarchy among the top Asian carmakers has been set on its ear in recent months — much of that as a result of Toyota's embarrassing string of massive safety recalls that has shaken consumer confidence.
"Right now, Toyota is the major automaker in play," said Jack Nerad, executive market analyst and editorial director for Kelley Blue Book. "There is some weakness there, and how that gets redistributed is anybody's guess. Nissan would be one of the beneficiaries."
New TV spots start
Nissan North America, based in Franklin, Tenn., plans to unveil an advertising campaign this weekend that plays off what the carmaker sees as its strengths, including innovation, styling and dependability.
One spot shows a toy Nissan Altima coming hood-to-sneaker with a small boy bent on destroying it with alternating barrages of shampoo, mashed potatoes, snails and a massive foot stomp.
The Altima lives and ends up in a consumer's driveway as it morphs into a real car.
That spot and others seem aimed at bringing consumers a message of "innovation for all," emphasizing the Nissan brand's safety, performance and technology.
Hyundai, by way of comparison, has achieved its recent sales gains with value-oriented pricing, and since early last year, a program that promises to buy back any new Hyundai vehicle within a year of purchase if a customer gets laid off or becomes physically incapacitated and can no longer afford the car.
"Clearly, the Koreans have a unique position, with their currency pegged to the dollar, and they are coming with all kinds of product," said David Cole, chairman of the Michigan-based Center for Automotive Research. "Nissan has been doing very well the past couple of years, but it's going to get very interesting. It's going to be a real horse race."
Product barrage
Another strength, analysts say, is a wave of new products coming off Nissan's assembly lines in the next 24 months.
The new-product barrage could make Honda and Hyundai's portfolios look a bit thin, analysts suggest, and Nissan might have an edge because it also has trucks in its mix.
For Nissan, the name of the game is "product, product, product," said Jon Brancheau, who became Nissan's marketing vice president last month.
Besides introducing the all-new compact Juke sport crossover in October, Nissan will roll out the Leaf — the world's first mass-produced all-electric car — in December.
A new Quest minivan will arrive in January, and six other new or revamped models will be brought to market over the next two years.
Catching up, staying ahead
"Clearly, catching up with Honda is what we're after, but we're not putting any timetable on it," said Brancheau, who spent more than 20 years in marketing at General Motors before joining Nissan three years ago in its Infiniti luxury vehicle division.
Nissan North America has a long way to go to catch Honda, whose 2009 market share was 11.1%, compared with just 7.4% for Nissan.
AutoPacific's numbers already show Nissan and Hyundai tied in U.S. new-vehicle market share for 2010 through July when Hyundai's sales are combined with those of its Kia subsidiary.
Year-to-date sales through July totaled 522,669 for Nissan (NSANY), including its Infiniti; that compares with 515,376 in combined sales for Hyundai and its Kia subsidiary.
Over the same time period, Honda (HMC) remains No. 2 among the Asian carmakers, with sales of 706,346 vehicles, including its premium Acura brand.
Toyota ™ remains a solid No. 1 among the Asians, at just over 1 million sales through July.
General Motors leads in U.S. sales overall at 1.28 million vehicles through July, followed by Ford (F) at 1.12 million, industry data show.
Kim predicts that Hyundai — with Kia sales included — will overtake Nissan for the entire year, finishing 2010 with an 8% market share of sales compared with 7.8% for Nissan.
NASHVILLE — Toyota's tarnished image has helped Nissan gain ground among Asian carmakers this year, but a U.S. sales surge by fast-moving South Korean automaker Hyundai may knock the carmaker down a notch just as it starts an ad campaign this weekend to move up.
Buoyed by 10 straight months of sales gains, Nissan was making in-roads to eventually unseat Honda as the No. 2 Asian automaker on these shores, but Hyundai's pitch of lower prices for midsize sedans is capturing momentum, especially when coupled with sales of the Kia brand that Hyundai also owns.
"Really, Nissan's biggest threat isn't Honda," said Ed Kim, chief industry analyst for the research firm AutoPacific. "The one they need to be concerned about is Hyundai."
Some analysts see Hyundai — combined with Kia — overtaking Nissan in market share by the end of the year based on the number of cars sold.
A once clear-cut hierarchy among the top Asian carmakers has been set on its ear in recent months — much of that as a result of Toyota's embarrassing string of massive safety recalls that has shaken consumer confidence.
"Right now, Toyota is the major automaker in play," said Jack Nerad, executive market analyst and editorial director for Kelley Blue Book. "There is some weakness there, and how that gets redistributed is anybody's guess. Nissan would be one of the beneficiaries."
New TV spots start
Nissan North America, based in Franklin, Tenn., plans to unveil an advertising campaign this weekend that plays off what the carmaker sees as its strengths, including innovation, styling and dependability.
One spot shows a toy Nissan Altima coming hood-to-sneaker with a small boy bent on destroying it with alternating barrages of shampoo, mashed potatoes, snails and a massive foot stomp.
The Altima lives and ends up in a consumer's driveway as it morphs into a real car.
That spot and others seem aimed at bringing consumers a message of "innovation for all," emphasizing the Nissan brand's safety, performance and technology.
Hyundai, by way of comparison, has achieved its recent sales gains with value-oriented pricing, and since early last year, a program that promises to buy back any new Hyundai vehicle within a year of purchase if a customer gets laid off or becomes physically incapacitated and can no longer afford the car.
"Clearly, the Koreans have a unique position, with their currency pegged to the dollar, and they are coming with all kinds of product," said David Cole, chairman of the Michigan-based Center for Automotive Research. "Nissan has been doing very well the past couple of years, but it's going to get very interesting. It's going to be a real horse race."
Product barrage
Another strength, analysts say, is a wave of new products coming off Nissan's assembly lines in the next 24 months.
The new-product barrage could make Honda and Hyundai's portfolios look a bit thin, analysts suggest, and Nissan might have an edge because it also has trucks in its mix.
For Nissan, the name of the game is "product, product, product," said Jon Brancheau, who became Nissan's marketing vice president last month.
Besides introducing the all-new compact Juke sport crossover in October, Nissan will roll out the Leaf — the world's first mass-produced all-electric car — in December.
A new Quest minivan will arrive in January, and six other new or revamped models will be brought to market over the next two years.
Catching up, staying ahead
"Clearly, catching up with Honda is what we're after, but we're not putting any timetable on it," said Brancheau, who spent more than 20 years in marketing at General Motors before joining Nissan three years ago in its Infiniti luxury vehicle division.
Nissan North America has a long way to go to catch Honda, whose 2009 market share was 11.1%, compared with just 7.4% for Nissan.
AutoPacific's numbers already show Nissan and Hyundai tied in U.S. new-vehicle market share for 2010 through July when Hyundai's sales are combined with those of its Kia subsidiary.
Year-to-date sales through July totaled 522,669 for Nissan (NSANY), including its Infiniti; that compares with 515,376 in combined sales for Hyundai and its Kia subsidiary.
Over the same time period, Honda (HMC) remains No. 2 among the Asian carmakers, with sales of 706,346 vehicles, including its premium Acura brand.
Toyota ™ remains a solid No. 1 among the Asians, at just over 1 million sales through July.
General Motors leads in U.S. sales overall at 1.28 million vehicles through July, followed by Ford (F) at 1.12 million, industry data show.
Kim predicts that Hyundai — with Kia sales included — will overtake Nissan for the entire year, finishing 2010 with an 8% market share of sales compared with 7.8% for Nissan.
08-30-2010, 06:50 AM
#2
I just bought a Toyota on Friday. No worries about there safety here.
I do prefer Honda as an automaker, but the Highlander fit the bill better than a Pilot.
I do prefer Honda as an automaker, but the Highlander fit the bill better than a Pilot.
I immediately assumed that this thread would be about either Hyundai or Nissan.
Wake up Honda!!
08-30-2010, 07:54 AM
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This doesn't surprise me. I wounder if the Japanese makers will start to complain about the way the Korean government helps out Hyundai (protected home market, currency fixed to the dollar etc).
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08-30-2010, 08:32 AM
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Nissan's turn around has really been stunning. 10 years ago, Nissan was on the verge of bankruptcy. If you look at what products helped bring Nissan back from the brink, I would argue that it was primarily their introduction of a lineup of price/performance bargains: a 260HP V6 Altima, a new Z car for $26,000, a dramatically improved SE-R that was a performance bargain, the G35 Sedan and Coupe that outperformed a comparable BMW 3 Series for $10,000 less, and a new full size SUV and pickup with a powerful and sophisticated V8 as the only engine option.
Conversely, 10 years ago, Honda used to offer a whole lineup full of price/performance bargains that gave buyers a lot of bang for their buck. But today I can't think of a single Honda product that is a performance bargain
Andrew
Conversely, 10 years ago, Honda used to offer a whole lineup full of price/performance bargains that gave buyers a lot of bang for their buck. But today I can't think of a single Honda product that is a performance bargain
Andrew
08-30-2010, 09:47 AM
#9
Notice that they say "Hyundia PLUS Kia" will possibly overtake Nissan, then possibly Honda in a few years. Hyundai isn't going to do it by itself for a while and it also assumes they maintain growth levels (highly unlikely). Why highly unlikely? Because growth numbers are generally higher when you first make a shift from building crappy cars to building good cars. They tend to flatten a lot as time moves on and especially as others get equally aggressive/competitive.